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Microcap & Penny Stocks : ARET (Formerly KLHE) -- Ignore unavailable to you. Want to Upgrade?

To: John Algermissen who wrote (2745)	11/27/1997 2:38:00 PM
From: Michael Harb	Read Replies (1) \| Respond to of 4594

<<I can't help but feel it means something when the bid and the ask are the same. Any thoughts? .027 x .027>> Doesn't mean a thing. Happens every day in almost every reasonable heavily traded nasdaq/otc stock. Consider this situation: FAHN .026 FRAN .027 ALEX .026 MHMY .028 CCCC .025 NITE .030 NITE .024 FAHN .030 Say some buying pressure is developing, and NITE decides they want to ride the bid and buy up some shares. Well, to do that, they'll have to outbid ALEX and FAHN both at .026. Since the spread is already tight .026 x .027, NITE will have to jump up to .027. This creates a temporary anomaly which would most likely result in FRAN moving up to .028 or greater. Such situations usually last for 15 seconds or less, but can happen very frequently. It is just a sign of more intense competition among the MM's. You wouldn't see that situation when the spread is already wide. mike